LivePerson Pro Forma EPS Improves 18% Vs. Prior Quarter To Loss of $0.09
NEW YORK, Nov. 1 -- LivePerson, Inc. (Nasdaq: LPSN), a leading Application Service Provider (ASP) of technology facilitating real-time sales and customer service for companies doing business on the Internet, today announced financial results for the quarter ended September 30, 2001.
Revenue for the three months ended September 30, 2001 was $1.7 million, a slight decrease from $1.8 million in the corresponding period of 2000 and from $1.9 million for the three months ended June 30, 2001.
Pro forma net loss for the three months ended September 30, 2001, excluding non-cash compensation, amortization of goodwill and restructuring charges, was $3.2 million, as compared to $7.3 million in the corresponding quarter of 2000 and $3.7 million for the three months ended June 30, 2001.
Pro forma basic and diluted net loss per share for the three months ended September 30, 2001, excluding non-cash compensation, amortization of goodwill and restructuring charges, was $(0.09) per share, as compared to $(0.25) per share for the corresponding period in 2000 and representing an 18% improvement vs. $(0.11) per share for the quarter ended June 30, 2001.
Commenting on the results for the third quarter, Chief Executive Officer Robert LoCascio stated, "We are very pleased with the Company`s operating results. During the quarter, we upgraded 100% of our client base to LivePerson Version 4.5, a less expensive platform for the Company to install and support, with greater reliability and stability for our clients. We continue to be on track to achieve monthly pro forma operating cash profitability by December. This is a major turning point for the Company; these results will show that the business model is working."
Historical basic and diluted net loss per common share for the three months ended September 30, 2001 was $(0.40) per share, as compared to $(0.32) per share for the corresponding quarter in 2000 and $(0.13) per share for the three months ended June 30, 2001.
President and Chief Financial Officer Tim Bixby stated, "In a difficult software environment, we`ve reduced our pro forma net loss per share by more than 18% vs. the prior three months for the third consecutive quarter. As the new fiscal year begins on January 1st, we see LivePerson generating positive pro forma cash flow, with ample cash reserves and no restricted cash on the balance sheet."
Additionally in the third quarter, the Company incurred a restructuring charge of $9.2 million related primarily to write-offs of obsolete hardware, software and leasehold improvements. "Our transition to a single network infrastructure and the elimination of a significant real estate lease obligation drove the restructuring charges," Bixby added. "We will see dramatic operating cost reductions in the fourth quarter as a result, positioning us to achieve our goal of monthly pro forma operating cash profitability."
LivePerson also announced that a 1 for 15 reverse split of its common stock, approved by stockholder vote on September 11, 2001, will not be effected, as a result of a determination by the Company`s Board of Directors. The Nasdaq National Market has terminated the Company`s delisting hearing process, and temporarily suspended certain listing requirements, including its $1.00 minimum bid price listing requirement through at least early 2002. As a result, the Company has determined that any potential delisting would not occur until at least the second quarter of 2002.
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